Tax Alerts
Tax Briefing(s)

As you go about your daily life conducting business online, hackers are in the wings waiting to pounce and exploit one innocent miss-click, mistake or mismanagement of company data. Turning a blind eye or being in denial of the realities of cybercrime and data breaches can destroy your company’s brand and reputation. You must continually work toward protecting your business from cybercrime and you must monitor your systems and process 24/7 without fail.


In general, the new tax Act provides for stricter limits on the deductibility of business meals and entertainment expenses. Under the Act entertainment expenses incurred or paid after December 31, 2017 are nondeductible unless they fall under specific exceptions. One of those exceptions is for “expenses for recreation, social, or similar activities primarily for the benefit of the taxpayer’s employees, other than highly compensated employees.” (i.e. office holiday parties are still deductible). Business meals provided for the convenience of the employer are now only 50% deductible whereas before the Act they were fully deductible. Barring further action by Congress those meals will be nondeductible after 2025.


The 2018 dollar limit on the maximum permissible allocation under a defined contribution plan is $55,000. The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified defined contribution plan is $275,000.

The 2018 limit on the maximum amount of elective contributions that a person may make in to a §401(k) plan, a §403(b) tax-sheltered annuity or a §457(b) eligible deferred compensation is $18,500. The limit on "catch-up contributions" for persons age 50 and older is $6,000.

The 2018 dollar limit on the maximum annual benefit under a defined benefit plan is $220,000.


As the school year ends, summer vacation offers parents and students alike the opportunity to focus on what may be their most considered subject: PAYING FOR COLLEGE. Many families commit unforced errors in their efforts to save and pay for hefty tuition bills.

Among the traps people fall into are:

  • Obsessing about school choice;
  • Thinking it isn’t worth it to apply for aid or scholarships; and
  • Not considering “529” college-savings plans.

States have become quicker to declare assets “abandoned” when account owners lose touch with a financial institution.  Although state laws vary, assets may be determined abandoned if the account owner has not made contact with the institution for three to five years.  These accounts consist of refunds, bank accounts, insurance proceeds and recovered goods, including cash, stock, bonds and other items that may belong to you. 


IRS Commissioner John Koskinen has asked companies to report patterns of fraud and for tax preparation firms to team up to fight return fraud.  Criminals are using stolen identities to claim refunds.


The Washingtonian has recognized Dalbert B. Ginsberg as one of the Washington Metropolitan area top Tax Accountants based on a survey of financial professionals and research conducted by the magazine.


The House on April 18 approved the two largest bills of a bipartisan IRS reform package. On April 17, the House approved seven other bills, by voice vote, which are also part of the larger bipartisan package. Its aim is to restructure the IRS for the first time in 20 years. The entire package of bills was approved by the Ways and Means Committee several weeks ago.


The IRS provided an additional day for taxpayers to file and pay their taxes, following system issues that surfaced early on April 17. Individuals and businesses with a filing or payment due date of April 17 had until midnight on Wednesday, April 18, to file returns and pay taxes. Taxpayers did not need to take extra actions to receive the extra time.


The White House and Republican lawmakers are continuing discussions focused on a second round of tax reform, according to President Trump’s top economic advisor. National Economic Council Director Lawrence Kudlow said in an April 5 interview that Trump and House Ways and Means Committee Chairman Kevin Brady, R-Tex., spoke earlier in the week again about a "phase two" of tax reform


Certain proposed regulations issued by Treasury will now be subject to additional oversight by the Office of Management and Budget (OMB). A Memorandum of Agreement (MOA) between Treasury and OMB released on April 12 specifies terms under which the Office of Information and Regulatory Affairs (OIRA) within OMB will review future tax regulations.


The IRS is already working on implementing tax reform, according to IRS Acting Commissioner David Kautter. Speaking at a Tax Executives Institute event in Washington, D.C., Kautter discussed current IRS efforts toward implementing tax law changes under the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97).


Technical corrections to the partnership audit rules were included in the bipartisan Consolidated Appropriations Act (CAA), 2018 ( P.L. 115-141), which was signed by President Trump on March 23. The omnibus spending package, which provides funding for the government and federal agencies through September 30, contains several tax provisions, including technical corrections to the partnership audit provisions of the Bipartisan Budget Act (BBA) of 2015 ( P.L. 114-74).